Kibo Mining makes solid progress at Mbeya and Imweru

The AIM and JSE-traded firm said work on the MCPP is continuing at pace, with all attention and resources focused on completing the Integrated Bankable Feasibility Study as soon as possible, so that financial close activities could commence.

Its board warned, however, that policy changes currently being considered by the Tanzanian Government aimed at improving and simplifying the procurement process for Independent Power Producer projects like the MCPP may cause a slight delay in completing the IBFS.

Any delays may be required to allow the company to incorporate the latest IPP policy on Power Purchase Agreements.

Productive interaction with the Tanzanian Ministry of Energy and Minerals and TANESCO is continuing, the board added, with all parties working diligently towards the development and conclusion of a mutually agreed commercial PPA for the MCPP.

A number of parallel work streams are also progressing well, with the Environmental and Social Impact Assessment more than 75% complete, the Definitive Power Feasibility Study completed with results “well above expectations”, and the EPC-contracting process “underway and within schedule”.

Kibo said Operation and Maintenance contracting is also underway and on schedule, with the process to obtain expressions of interest from international service providers successfully completed.

The Definitive Mining Feasibility Study has also been completed, with results “well above expectations”, and the statutory certification process remains “on schedule”.

At the Imweru Project, the company signed a Memorandum of Understanding with Lake Victoria Gold on 2 June, in which the two companies agreed to consolidate their respective Imweru and Imvelo gold projects.

On 5 July Kibo announced a “minor unforeseen delay” in completing the compliance and legal work required to finalise the definitive agreement.

The board said the final component required to satisfy compliance and legal requirements was a site visit to Imweru and Imvelo, attended by representatives of the company and LVG, as well as independent technical consultants and financial advisors to the transaction.

Kibo confirmed the site visit was successfully conducted from 26 to 29 July, with the independent consultants and advisors able to obtain conclusive independent verification of all technical and legal representations fundamental to the definitive agreement.

The board said all outstanding compliance and legal work have now been completed and the company and LVG are in a position where they can execute the definitive agreement.

This is expected by no later than 8 August.

“We are very pleased with the continued progress at the company's two main projects,” said Kibo Mining CEO Louis Coetzee.

“Significant progress has been made on both over the past four months and both projects are continuing to grow in stature and value.

“We are looking forward to realising this value over the coming months and further updates will follow shortly,” Coetzee added.